> Methodology

Methodology

ESG serves as the primary framework used to assess the commitment of companies in forest-risk sectors to sustainable and ethical business practices.

Considerations related to environmental aspects include efforts to mitigate climate change, resource management (water, energy, or waste), pollution control, and biodiversity conservation.

  1. The social aspect examines how companies interact with their workforce, stakeholders, and communities.
  2. Governance-related assessments cover corporate leadership and board structure, transparency and accountability in decision-making, risk management, as well as business ethics and anti-corruption practices.
  3. Ensuring the legal status of companies operating in any jurisdiction requires compliance with certain document requirements. Therefore, fulfilling mandatory documents is crucial as evidence of companies’ compliance with applicable laws and regulations, as well as demonstrating their legitimacy in conducting business activities.
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